Jeonbuk Bank launches South Korea’s first Bitcoin-backed loans for corporate clients

A regional South Korean lender has just done something none of the country’s banks had done before. Jeonbuk Bank now lets corporate clients borrow Korean won using Bitcoin as collateral. The product launched on October 12, 2026, and is described as the first won-denominated loan in South Korea secured by Bitcoin. Jeonbuk Bank, a subsidiary of JB Financial Group, says it plans to expand the offering depending on market demand and how regulations develop. For now, the door is open only to businesses. How the loans actually work Jeonbuk Bank does not take custody of the Bitcoin pledged against these loans. Instead, it works with qualified virtual asset service providers that meet South Korea’s custody standards. Those custodians must comply with local rules, including ISMS certification and the Virtual Asset User Protection Act. ISMS is South Korea’s information security management certification, essentially a government-backed stamp saying a firm’s data and systems meet a defined security bar. The bank’s role is narrower. It handles valuation and lending, and it does not own or manage the Bitcoin sitting in custody. The loans are restricted to corporate clients. The money is meant fo...